Christine Lagarde, managing director of the International Monetary
Fund, said Mexico needs to implement structural reforms and Brazil
should increase domestic savings.

Mexico should keep a “keen eye” on conditions in the United
States and Europe, and Peru would benefit from continued reforms to
achieve more inclusive growth while preserving macroeconomic stability,
Lagarde said today on the IMF’s blog.

While Latin America is enjoying sustained growth and reduced
vulnerability, the region should take “all necessary precautions” to
prepare for any storms that come out of Europe, Lagarde said. The region
should maintain prudent fiscal policies, although those policies should
not come at the expense of social programs or productive investment in
education or infrastructure, Lagarde said.